Well, it’s no doubt that whilst we, in Australia, are not ‘in the middle’ of things with the Middle East War, there is no doubt it will impact us as both individuals and businesses. For those with friends and family in the region, it will be personally very distressing; sending you absolute best wishes for your loved ones. For most Aussie businesses, there will be impacts and things that we should be actioning now in preparation for what could occur. We, as a country, proved during COVID-19 that we are very adaptable and resilient. We have worked our way through fires, floods and cyclones; and we will work our way through this too!
Business Tips
Supply Chain
Don’t assume because you don’t import products from (or through the region) that it won’t affect you; it will affect many things. Many stores and suppliers will be affected. I do suggest that if there is a product (say you’re an electrician and cable is critical to your work), that you stock up; that is, ensure you’ve got ‘safety stock’ of critical components for you to do business ongoing. Whatever you do, don’t bury your head in the sand, saying it won’t affect us here ‘down under’.
Logistics
If you actually import products, look at your supply chain and specifically the likely impacted travel route. It may be that you’ll need to switch to sea, versus air (which, of course, will take much longer). In short, identify your risks, plan for various and different contingencies and then put your plans in place.
Contracts
It’s highly recommended that you review your contracts, especially if there are any force majeure clauses. That is clauses that manage unforeseeable circumstances. If your contracts or Terms & Conditions don’t have these conditions, then now might be a good time to review and revamp. This not only would cover fuel costs, but also material price rises AND any delays in delivery or project delays.
Insurance Audit
Now might be a good time to ensure your insurance (especially in respect of cargo shipments or business interruption) will cover you – whether it’s this war, a fire, or the next cyclone or flood. It’s too late after an incident to think “gosh, wish I’d looked into that”. I know we are all busy people, but as a friend of mine has always said – “the devil is in the detail”.
Financial Buffers
I bang on time and time again with my business coaching clients to have a savings plan in place and be prepared for a ‘rainy day’. Money aside, it means you can cover your wages for a period of time, pay the bills and still eat … reducing a mammoth amount of stress and distress. With savings, even if you don’t have much left over, two things are critical: a) start straight away, and b) start with a small amount which is automatic. If you manage the small amount ok, then increase that weekly transfer.
Fuel & Energy Costs
In order to prepare for a ‘bowser shock’, where prices of fuel could go up anywhere from $1 per litre or more. Consider a temporary fuel surcharge, or at the very least, price jobs presently as if the fuel is up $2 a litre. You, as a business, shouldn’t starve because your margins have been shot down. If you’re a client of mine, I have a treat template for customers re this; just ask me.
Travel Restrictions
It goes without saying you shouldn’t be sending staff overseas at present for business, even if it’s not the Middle East, everything is going to be difficult and expensive in respect of travel. Really, even if this wasn’t happening, you should where possible use platforms like Zoom, Google Meet, Skype or Teams for ‘meetings’ anywhere in the world. Even internally, given fuel prices on the rise, reduce unnecessary travel costs and utilise these platforms.
Get Smart with Travel
At any time, but especially now, get smart with your work or delivery run. You shouldn’t be doing jobs all over the place in a day; plan scheduling well, so you’re being efficient with time, fuel and vehicle wear. Likewise, if your team have a tendency to forget things, and need to run down to the hardware (via McDonalds), then now more than ever, ensure people stop being forgetful, and that includes taking their lunch to the site; rather than ‘just borrowing the work ute to grab some lunch’.
Debt Reduction
The business with minimal debt often is the one which does better when there is a crisis. This is a long-term strategy, but it might be something to consider ongoing. Too often, businesses see putting something on a credit card or via finance as not costing you that much, because the monthly payments are not astronomical. However, should you not be able to make repayments, and you’ve got no savings buffers, then you can be in trouble.
Elevate Cyber Security Vigilance
Australia is being seen as a target for ‘hacktivists’ at this time; there are numerous warnings to be particularly careful. If you’re a small business, then you’re seen as easy pickings. Notoriously, small business spends little on cyber protection (on average, an SME spends less than $500 a year). So, whilst wins might be smaller for a hacker, we are low-hanging fruit which is often super easy to pick. Again, if you’re a business coaching client of mine, I have a Cyber Security Resource; please just ask. Reminder staff to be hyper vigilant, check everything and if unsure, or it ‘feels’ wrong, then double check.
Practical Personal Info Security
A strategy is often used by hackers called the ‘Stepping Stone’ Strategy (no, not one of my first three books) where the hacktivist will attack someone else in order to gain extra info on someone with more money. It might be their bookkeeper, IT person, or often in the case of a retailer, their customer list, where they will go for volume. For this reason, I’m very careful about who has my full details; my optometrist, Fly Buys or Dan Murphy’s, for example, don’t need to know my full DOB and exact home address. And I absolutely don’t share anything super personal on FB, including my vehicle rego number in pics. Take time, take care, be super diligent and of course remember to have your 2FA on where possible.
Team Support
Your staff at present are likely distracted and worried. If they’ve got friends or family overseas, then more so. Offer support and prioritise wellbeing. Remind staff also that you’ve got things in place with critical components being stockpiled or you’ve implemented a fuel levy. This isn’t just about protecting your profit, but about keeping the business sustainable and secure, which protects their jobs. It might be wise to encourage the team to avoid watching the news too much or spending too much time on social media on the subject; it’s all just very negative and often frightening. Though remember, you’re not a counsellor or psychologist, so don’t try to be one.
Customer Communication
In all of this, customers may also be worried, so be sure to keep the doors of communication open and assure them that you’ve taken action to ensure you’ll be able to deliver. It might mean a little patience on their part, or perhaps a temporary fuel levy, but they should be rest assured that you’ll be looking after them and only doing what is necessary – definitely no profiteering.
Marketing Messages
During conflict or disaster, many people (and businesses) switch to saving mode and will often put off discretionary spending. Where possible, suitable and relevant, remind your customers that you are a service that saves them money in the long term. For example, if you do mechanical repairs, maintenance services, or even if you are a bookkeeper, you help the business stay on task and on track.
Whilst we all hope that the conflict in the Middle East settles soon and doesn’t drag on, we need to hope for the best, plan for the worse and take what comes in between. As an experienced business coach, I’ve seen lots of situations which initially appear bad, but when you talk with someone about what is happening, get solid practical advice and then have an action plan moving forward, then the problem reduces. We cannot always mitigate every threat, but we can control how we respond and manage that threat. If you have a concern or want to make your business as disaster-proof as possible, reach out to me.
My passion is your resilient and sustainable potential.
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